On January 27, the Hong Kong stock market saw net selling of HKD 635 million by northbound capital. Specifically, the Shanghai-Hong Kong Stock Connect recorded a net sell-off of HKD 1.374 billion, while the Shenzhen-Hong Kong Stock Connect saw a net inflow of HKD 739 million. The stocks that attracted the most net buying from northbound capital were Tencent (00700), China Life Insurance (02628), and Yangtze Optical Fibre and Cable (06869). Conversely, the stocks with the largest net sell-offs were China Mobile (00941), Zijin Mining (02899), and the Tracker Fund (02800).
Technology stocks exhibited a divergent performance, with Tencent (00700) receiving a net inflow of HKD 1.023 billion, while Alibaba-W (09988) faced a net outflow of HKD 401 million. As the 2026 Spring Festival approaches, competition among Chinese internet giants for traffic via AI assistants is intensifying rapidly. Tencent Yuanbao has announced a CNY 1 billion cash red envelope campaign, centered on a "try AI features - get rewards" model that emphasizes high-frequency interaction and social sharing. Although Alibaba has not yet officially announced its Spring Festival red envelope plans, it previously demonstrated the interactive capabilities of its Tongyi Qianwen model during Bilibili's New Year's Eve gala, making a follow-up campaign during the holiday highly likely. Citigroup noted in a recent report that this is not merely a seasonal promotion but rather a critical test window for Chinese AI assistants reaching an inflection point toward mass adoption.
China Life Insurance (02628) garnered a net inflow of HKD 511 million. According to disclosures on the Hong Kong Exchange, Ping An Insurance increased its stake by purchasing 14.2 million H-shares of China Life on January 21, involving approximately HKD 470 million. Following this purchase, Ping An's total holding in China Life H-shares has surpassed 9%. Additionally, Huatai Securities estimates that CNY 50 trillion in one-year and longer-term time deposits will mature in 2026. Against a backdrop of declining interest rates, these funds have become a focal point for insurers, wealth management products, and public funds.
Yangtze Optical Fibre and Cable (06869) received a net inflow of HKD 354 million. Industry reports indicate that in the fourth quarter of 2025, the mainstream G.652.D optical fibre, which has long dominated the market, experienced significant price increases and supply constraints. Some major manufacturers have exhausted their inventories and have begun sourcing externally to meet order demands. First Shanghai stated that, driven by AI computing demands, the company is well-positioned to benefit from fibre optic demand upgrades and strong overseas market conditions, anticipating a sustained cycle of volume and price increases for its fibre optic cables and optical interconnect components, leading to an upward profit trend.
CNOOC (00883) attracted a net inflow of HKD 312 million. Heightened geopolitical tensions involving Iran and Cuba have contributed to market movements. Everbright Securities released a report suggesting that prolonged global instability and geopolitical uncertainties are likely to underpin robust oil prices over the long term. Furthermore, the IEA has raised its crude oil demand forecast for 2026, projecting global demand growth of 930,000 barrels per day, up from 850,000 barrels per day in 2025.
Stocks within the Zijin group surged collectively today on positive news, prompting some northbound capital to sell into the strength. Zijin Gold International (02259) and Zijin Mining (02899) experienced net outflows of HKD 133 million and HKD 842 million, respectively. The catalyst was the announcement that Zijin Gold International, an 85%-owned subsidiary of Zijin Mining, will acquire 100% of Allied Gold for a total cash consideration of CAD 5.5 billion (approximately CNY 28 billion). Bank of China International noted that this acquisition will increase Zijin Gold's proven and probable reserves by 36% and boost its gold production by 43% by 2029. The acquisition is also expected to generate synergies with Zijin Gold's existing mining operations in Ghana.
Semiconductor stocks also faced selling pressure, with Hua Hong Semiconductor (01347) and SMIC (00981) seeing net outflows of HKD 191 million and HKD 552 million, respectively. Following significant prior gains, valuations in the semiconductor sector have reached relatively high levels, leading to increased market volatility. Chen Xizhong, portfolio manager of China Merchants Robust Preferred Stock Fund, commented that investment strategies should currently focus on fundamentals and certainty, prioritizing leading companies in high-growth segments that possess core technologies, strong product competitiveness, and a proven ability to deliver sustained earnings growth and market share expansion.
Additionally, Junda Holdings (02865) received a net inflow of HKD 37.64 million, while China Mobile (00941) saw a substantial net outflow of HKD 1.147 billion.
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